Better Markets is a nonprofit organization that has backed the U.S. Securities and Exchange Commission in an appeal filed against Ripplelabs.
It is important to note that the word “you” means “You”. Brief Description Asks the Second Circuit Court of Appeals overturn a ruling from a District Court in 2023 which deemed Ripple XRP Sales to Retail Investors exempt from U.S. Security Laws.
In its brief, the non-profit cited the ruling and stated that the court had misapplied Howey Test. This put at risk the integrity of the investor protections.
It is possible that the ongoing SEC/Ripple litigation will have far-reaching effects on crypto, because it could determine how digital assets fall under securities law.
An amicus brief is a legal document filed by a non-party with a strong interest in a case, offering information or perspectives to assist the court's decision, often in appellate or public interest cases.
It is noted in the short that XRP’s exchange sales still meet the Howey Test and qualify it as a financial instrument. “investors’ acquisition of those securities on trading platforms does not alter their character as such.”
Ripple’s marketing efforts were clearly intended to generate profits, the organization argued.
The report also said that the decision weakens protections for investors by opening a loophole to digital asset transactions, putting retail traders in greater danger.
“The district court’s decision has the perverse effect of protecting institutional investors but not retail investors,” Better Markets has called on the court of appeals to rectify this unbalance.
The brief said that Ripple’s marketing strategy, including extensive promotion of XRP’s potential value was designed to entice retailers and to create expectations for profit linked to Ripple’s efforts.
The Briefest History
SEC was initially You can find out more about this by clicking here. In December 2020, the lawsuit will accuse Ripple and its CEO Brad Garlinghouse as well as co-founder Chris Larsen, of raising more than $1.3 billion in unregistered sales.
Under former SEC chair Jay Clayton, the case began and was intensified by Gary Gensler as the SEC argued that XRP met the Howey Test for investment contracts.
Coinbase, a crypto-exchange in 2022 filed an amicus brief supporting Ripple. The focus was on SEC’s lack of clarity regarding digital assets.
According to the exchange, XRP was delisted from several major platforms as a result of the lawsuit. This led to a 15 billion dollar market decline.
Ripple gained initial ground in July of 2023, when a District Court ruled that XRP sold to retail investors via exchanges was not against securities laws.
The same court also found Ripple guilty. The liable For $125,000,000 in August 2024 declaring institutional XRP sales violated securities laws.
The SEC is officially known as Appealed Ripple said that its marketing had created clear expectations of profit among investors and satisfied the Howey Framework. Ripple followed. cross-appeal.
Ripple labs was targeted more aggressively by Ripple’s regulatory agency You can find out more about this by clicking here. A more detailed appeal was filed last Wednesday. It built on its original notice of appeal in October.
Ripple’s case also sheds light on Gensler’s A contentious approach is taken to the enforcement of crypto. Critics claim Gensler used Ripple to demonstrate his regulatory authority in the crypto market.
Gensler’s resignation leads to a pro-crypto SEC acting Chair Mark Uyeda Expected to adopt a more friendly stance than his predecessor. This could fuel speculation about a possible settlement.
Dennis Kelleher, CEO of Better Markets, has been vocally opposed to cryptocurrency and criticizes the industry frequently. “lawless business model” It is a felony to label it with a "fraud on the public."
Kelleher’s January 2013 letter was a strong one. The letter SEC to refuse applications for Bitcoin spot exchange-traded fund (ETF), claiming that it would result in the agency making an unjustified decision. “grave if not historic mistake.”
Sebastian Sinclair edited the book
